Sales at McDonald's rise in quarter

Profits were up as the fast-food giant focused on price-conscious customers, but the company said it would cut back on financial support for franchisees, writes Julie Creswell from New York

- Julie Creswell

It has been a tough slog for restaurants over the past year as many contend with a slowdown in eating out among consumers.NYT

McDonald's bet on value meal deals appears to be working.

Wednesday, the fast-food giant said sales at US stores open for a year or more were up 6.8% in the fourth quarter from year-earlier levels. Overall, global same-store sales rose 5.7% in the quarter.

The company introduced a couple of high-profile promotions in the quarter, including the return of its popular Monopoly game and a limited-time Grinch meal deal that sold out rapidly in several locations.

But it has been a tough slog for restaurants over the past year as many have contended with a slowdown in eating out among consumers. After two years of price increases for burgers, burritos and chicken wings, many lower-income - and in some cases middle-income individuals - are eating out less frequently.

Recognising that many consumers were struggling with sticker shock on their fast-food orders, McDonald's has leaned heavily into value meals like a $5 Sausage, Egg and Cheese McGriddle or a 10-piece Chicken McNuggets meal for $8 as a way to lure customers.